The amount of $12 will be paid to BigCrumbs and which in turns gives to you
. Remember that the shipping price is excluded from the final auction price. Here is the explanation.
Smart sellers are aware that Ebay will charge them a fee for the final auction price. So they ask a low price for their item and charge a high shipping cost. For instance, a Polo perfume is priced at $20 on Ebay and a shipping price of $7. But other sellers are selling the same thing for $10 and charging $17 for shipping.
As a buyer, you are paying $27) but the seller saves a lot on Ebay fees in the second example. Ebay charges a final seller's fee on the sales price of $10 instead of $20. Your pay check commission will be bigger, the bigger the Ebay fee is.